Taxability of property transfers in divorce

Carolyn, who earns 400,000 is required to pay John, her ex husband 200,000 as part of the property settlement as a result of their divorce. In turn, John transfers stock worth 50,000 to Carolyn. What is the amount of Carolyn's adjusted gross income for the year?

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Carolyn's AGI for the year is $400,000 because transfers incident to divorce (property settlements) are not ...

Solution Summary

The solution discusses the differences between alimony and property transfers including the taxability of each.